As with any other occupation, purchasing manager salary varies widely depending on location, industry, and experience. According to May 2017 data from the U.S. Bureau of Labor Statistics, purchasing managers earn a mean hourly wage of $58.56, and a mean annual wage of $121,810.
The Range of Purchasing Manager Salaries
Want to know where your current procurement management salary falls in comparison to the national average? Low-end earners make $32.04 an hour, or $66,630 a year. The highest earners are making $87.87 an hour, or $182,780 a year.
Entry level positions – those with less than five years’ experience – pay an average of $66,000. Those in the late career stage, with 20+ years of experience earn an average of $97,000.
Where do you have the greatest chance of making money on the high end of the scale? You’ll have to strike a balance between the industry you work in, and where you live.
Data shows the states where you’ll earn the most money aren’t necessarily where you’ll find the most jobs available.
Procurement Management Industries: Where the Money is vs. Where the Jobs are
The highest paying industries for procurement management jobs in the supply chain are:
- Oil and Gas Extraction: Mean hourly wage of $76.02 or $158,110 per year.
- Nondepository Credit Intermediation: Mean hourly wage of $74.10 or $154,120 per year.
- Legal Services: Mean hourly wage of $70.35 an hour or $146,340. Sourcing managers account for less than .005% of industry employment, so chances of finding a procurement manager position are slim. If you work in procurement for legal services, we’d love to hear more about your experience.
- Data Processing, Hosting, and Related Services: Mean hourly wage of $70.27 or $146,160 per year.
- Other Information Services: Mean hourly wage of $69.96 or $145,510 per year.
Part of what makes some of the higher paying jobs difficult to find is the limited employment opportunities in these industries. Unfortunately, the industries with more job opportunities command a lower salary.
- Management of Companies and Enterprises: Procurement managers account for .52% of industry employment and earn $66.90 as an hourly mean wage for $139,150 a year.
- Federal Executive Branch: Purchasing managers account for .24% of industry employment and earn $63.31 an hour or $131,690 a year.
- Merchant Wholesalers, Durable Goods: Sourcing managers account for .18% total industry employment and earn $55.21 an hour or $114,830 per year.
- Aerospace Product and Parts Manufacturing: Managers in this industry account for .45% of all industry positions and earn a mean hourly wage of $64.89 for $134,970 per year.
- Navigational, Measuring, Electromedical, and Control Instruments Manufacturing: Managers in this industry account for .45% of all industry positions and earn a mean hourly wage of $63.08 for $131,270 per year.
- Other Transportation Equipment Manufacturing: In this industry, this position accounts for .44% of total industry employment. You could expect to earn a mean hourly wage of $52.47 for $109,130 a year.
- Audio and Video Equipment Manufacturing: In this industry, your position accounts for .41% of total industry employment. You could earn a mean hourly wage of $59.39 for an annual salary of $123,520.
Purchasing Managers have a high earning potential compared to the average salary for median wage workers. In the fourth quarter of 2017, median wage came in at $857 per week, or $44,564 annually.
Location, Location, Location: What State Should You Consider Working In?
Where should you go if you want to have a choice of jobs? The top five states in the United States with the highest procurement manager employment level are:
- California: Hourly mean wage of $63.23 for an annual salary of $131,520
- Texas: Hourly mean wage of $64.33 for an annual salary of $133,820
- Illinois: Hourly mean wage of $53.55 for an annual salary of $111,380
- New York: Hourly mean wage of $67.91 for an annual salary of $141,240
- Massachusetts: Hourly mean wage of $63.23 for an annual salary of $131,520
And yet, the highest concentration of purchasing management positions are in:
- District of Columbia: Hourly mean wage of $66.01 for an annual salary of $137,290
- Connecticut: Hourly mean wage of $60.92 for an annual salary of $126,720
- Massachusetts: Hourly mean wage of $59.77 for an annual salary of $124,330
- Minnesota: Hourly mean wage of $55.92 for an annual salary of $116,310
- Illinois: Hourly mean wage of $53.55 for an annual salary of $111,380
Surprisingly enough, where the jobs are isn’t necessarily an indication of where you will find the highest pay. The top paying states are:
- New Jersey: Hourly mean wage of $77.47 for an annual salary of $161,130
- Missouri: Hourly mean wage of $68.97 for an annual salary of $143,470
- New York: Hourly mean wage of $67.91 for an annual salary of $141,240
- South Dakota: Hourly mean wage of $66.22 for an annual salary of $137,740
- Colorado: Hourly mean wage of $66.20 for an annual salary of $137,690
And perhaps most importantly, the cities with the highest paying jobs for purchasing managers are:
- Newark, NJ: Hourly mean wage of $84.43 for an annual salary of $175,620
- Fayetteville, AR: Hourly mean wage of $81.24 for an annual salary of $168,990
- New York, NY: Hourly mean wage of $75.50 for an annual salary of $157,030
- Trenton, NJ: Hourly mean wage of $75.31 for an annual salary of $156,640
- El Paso, TX: Hourly mean wage of $75.28 for an annual salary of $156,590
- San Francisco, CA: Hourly mean wage of $74.06 for an annual salary of $154,050
- Benton Harbor, MI: Hourly mean wage of $73.02 for an annual salary of $151,870
- Peoria, IL: Hourly mean wage of $72.26 for an annual salary of $150,290
- San Jose, CA: Hourly mean wage of $71.57 for an annual salary of $148,870
- Houston, TX: Hourly mean wage of $71.33 for an annual salary of $148,380
So while it might be easier to find a job in Chicago you certainly won’t find the highest annual salary range for related jobs there.
Cost of living varies widely across these cities, so taking a lower salary may mean a more comfortable lifestyle. Take for instance the cost of living in Brooklyn, where median rent on a two-bedroom apartment is $2,660, compared to the cost of living in Fayetteville, AR.
The cost of living, according to Nerd Wallet is 50% lower in Fayetteville. If you earned that NYC mean salary, you could move to Fayetteville and maintain your NYC lifestyle earning just $78,061!
Now, when you consider the mean annual salary is much higher than that there – even slightly higher than the mean salary in NYC – suddenly living in Arkansas seems a bit more attractive, doesn’t it?
Though the Occupational Outlook Handbook suggests the purchasing manager job outlook is projected to experience a 3% decline from 2016 until 2026, there are still plenty of positions available with room to grow.
